Business Context and Reporting Period
Company: BRT Realty Trust (BRT Apartments Corp.)
Filing Type: Form 8-K (Current Report)
Date of Report: June 12, 2013
Event: Grant of an assignable option to acquire a joint venture interest in a midtown New York City leasehold property.
Key Financial Metrics
The filing does not provide comprehensive financial statements (revenue, profit, cash flow, margins, debt, or liquidity) for the reporting period. Specific financial data related to the event includes:
- Non-refundable Deposit Received: $200,000
- Anticipated Purchase Price Range: $5.5 million to $6 million
- Anticipated Gain on Sale: $5.5 million to $6 million
Material Changes
The primary material change is the execution of an option agreement on June 12, 2013. The company's joint venture partner has the right, but not the obligation, to purchase BRT Realty Trust's interest in the venture. The transaction structure allows for a variable purchase price based on specific terms.
Outlook, Risks, and Management Commentary
- Timing: Completion of the sale is anticipated in the summer of 2013.
- Contingency: The filing explicitly states that no assurance can be given that the sale will be completed.
- Financial Impact: If completed, the transaction is expected to generate a significant gain ranging from $5.5 million to $6 million.
Investor Verification Checklist
- Confirm whether the option was exercised and the sale was completed in the summer of 2013.
- Verify the final purchase price and the actual gain recognized upon closing.
- Review subsequent filings for any changes in the joint venture structure or leasehold terms.
- Assess the impact of the $200,000 deposit on current cash flows if the deal does not close.